The Daily Pulse of Bursa Malaysia

Pecca’s amazing run is not about to end given continued car sales growth

zaclim
Publish date: Thu, 14 Mar 2024, 08:47 AM
zaclim
0 95
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion
https://t.me/xifuinvcommunity

Pecca Group Bhd has touched an all-time high of RM1.44 on March 13. The counter rose some 47.4% over the past year, having slid to a low of 87 sen last August. The heightened interest in the automotive upholstery maker is understandable riding on projected higher car sales, which are expected to rise to a new record of 725,000 units in 2023 from 720,658 in 2022.

Fundamentally, Pecca has been in a strong position. It posted record profit and revenue for the past three financial years and is likely to maintain its earnings momentum with another set of all-time high figures in FY2024.

The group expects to do even better than the previous year in FY2024, supported by a strong backlog of orders received from carmakers. In its latest quarter, Pecca reported another record-breaking financial quarter with both revenue and net profit at all-time highs.

Its net profit jumped 59.1% to RM13.38 million for the financial quarter ended Dec 31, 2023 (2QFY2024) from RM8.41 million a year ago. Its quarterly revenue increased by 21.1% year-on-year to RM64.76 million from RM53.48 billion.

The group attributed the increase in revenue to the demand for upholstery car seat covers, the sewing and supply of covers for car accessories, and wrapping and stitching services.

For the six-month period, Pecca’s net profit rose 57.5% to RM26.4 million from RM16.8 million. Its revenue increased by 18.9% to RM128.8 million from RM108.35 million.

Pecca anticipates the automotive industry to be buoyed by economic growth, improved supply chain conditions and sustained buying interest in new vehicles including electric vehicles. To cater to the anticipated production volume requirements, Pecca is in the midst of building its second manufacturing plant at the UMW High Value Manufacturing Park in Serendah, Selangor. The plant is expected to commence operations by mid-2025.

The capital expenditure for the new plant is RM45 million to RM50 million, of which RM8 million is for land acquisition, another RM10 million to RM15 million for the installation of machinery, and RM30 million for construction work.

Upon completion, the group’s annual capacity will double to between 400,000 and 480,000 seats. In addition, the company is looking to expand its market by venturing into the luxury car brands market.

Currently, Pecca installs leather upholstery car seat covers for Perodua, Proton, Mitsubishi, Toyota and Nissan. It looks like Pecca is driving towards another record year and will probably help boost its share price further.

More articles on The Daily Pulse of Bursa Malaysia
Perdana Petroleum trades on new highs as it rides on come new jobs.

Created by zaclim | May 21, 2024

Perdana Petroleum is poised for further upside after touching its new high recently. It is a key beneficiary of an increase in upstream maintenance activities, drawing in plenty of trading activities.

MGB’s swelling order book anchors its forward earnings

Created by zaclim | May 20, 2024

MGB Bhd has been on the uptrend as it picks up contracts to ensure growth is sustainable. Its undemanding valuations should draw investors in.

Cengild may see a boost in share price after trading sideways since its listing

Created by zaclim | May 17, 2024

Cengild is on a downtrend since its listing in 2022 although it managed to touch a high of 46 sen in August 2023. But there seems to be more excitement for the counter as it rises from the oblivion.

MN Holdings holds on to recent highs but for how long?

Created by zaclim | May 14, 2024

MN Holdings Bhd has risen 134% in the past year to close at 74 sen on May 13. With exposure in the booming data centre and gree energy play, there could be further upside for the company

MCE hits new high with Brahmal’s entry, should see more upside

Created by zaclim | May 13, 2024

Little-known MCE Holdings took the market by the storm when it announced the emergence of savvy investor as its substantial shareholder. Will this positive news help sustain its uptrend?

Fajarbaru poised to break new highs as it ramps up jobs

Created by zaclim | May 13, 2024

Fajarbaru Builder Group Bhd saw a year-high of 37 recently and should trend higher in the near term as it is a beneficiary of the improving construction sector

Econpile trends higher on expected turnaround

Created by zaclim | May 09, 2024

Econpile Holdings Bhd has been on investors’ radar as the counter leapt 131% in over a year. What is drawing investors to this loss making company?

Increased spending on power infra augurs well for Southern Cable

Created by zaclim | May 08, 2024

SCGBHD is cruising ahead, hitting a year high of 60 sen recently. The company is poised to benefit from rising power infrastructure spending to cater for an expected rise in electricity consumption

06-May-2024-Mon: Stock Analysis – SEALINK (5145) – RM0.210:

Created by zaclim | May 07, 2024

SEALINK’s stock price has been consolidating within a symmetrical triangle for almost the past 7 months above SMA200 line

Sarawak themed stocks Naim, Dayang and Perdana making their moves

Created by zaclim | May 07, 2024

Naim Holdings Bhd has been lagging in share price versus its subsidies Dayang Enterprise Holdings Bhd and Perdana Petroleum Bhd. Has the time come for Naim to break new highs?

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment